E-COMMERCE and DEVELOPMENT REPORT 2004 Foreword

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E-COMMERCE and DEVELOPMENT REPORT 2004 Foreword 2 CHAPTER 1: ICT FOR ECONOMIC DEVELOPMENT: ISSUES FOR INTERNATIONAL DIALOGUE Table 1.1 Internet users worldwide (thousands), 2000–2003 2003 2002 2001 2000 Thousands 675 678 626 579 495 886 387 532 % change 7.84 26.36 27.96 .. Source: ITU (2004). From the point of view of the relative positions of (74.8 per cent) of the recorded growth in the developed and developing countries, the situation number of Internet users in the world occurred in has continued to move towards a growing pres- the developing world, and that the rate of growth ence of developing countries on the Internet, of its Internet population (17.5 per cent) is eight although this remains largely concentrated in a and a half times higher than that of developed relatively small number of nations. Five countries countries. Thus, according to ITU estimates, at (China, Republic of Korea, India, Brazil and Mex- the end of 2003 developing countries accounted ico) account for 61.52 per cent of all Internet users for more than 36 per cent of all the Internet users in the developing world. At the end of 2003, in the world, and the share of developing coun- almost three out of four Internet users in develop- tries in the Internet population of the world grew ing countries lived in the developing countries of by nearly 50 per cent between 2000 and 2003 (see Asia, as did two thirds of all the new Internet chart 1.1). users in the world. Table 1.2 shows the distribu- tion of Internet users between the developed and More detailed information is provided for a the developing countries and the recent evolution number of individual countries in table 1.3. The of the number of Internet users by region. countries listed there have been selected on the basis of either their demographic and economic Bearing in mind the fact that the data for 2003 are weight in their respective regions or of their still incomplete, it should be noted that much above-average performance. Table 1.2 Internet users by region, 2000–2003 (thousands) 2003 %Growth 2002 %Growth 2001 % Growth 2000 Africa 12 123 21.38 9 988 63 6 119 34 4 559 Asia 243 406 15.25 211 202 40 150 535 38 109 257 Europe 188 997 7.24 176 232 23 143 584 30 110 824 Latin America and Caribbean 44 217 4.19 42 439 45 29 224 65 17 673 North America (2002) 175 110 0.00 175 110 12 156 823 14 136 971 Oceania 11 825 1.88 11 607 21 9 601 16 8 248 Developed countries 396 754 2.06 388 746 15 339 427 19 285 480 Developing countries 246 290 17.53 209 556 50 139 317 48 94 352 Others 32 634 15.41 28 277 65 17 142 123 7 700 Total 675 678 7.84 626 579 26.36 495 886 27.96 387 532 Source: ITU (2004) data and UNCTAD calculations. E-COMMERCE AND DEVELOPMENT REPORT 2004 Foreword Information and communications technologies have considerable potential to promote development and economic growth. They can foster innovation and improve productivity. They can reduce transaction costs and make available, in mere seconds, the rich store of global knowledge. In the hands of developing countries, and especially small- and medium-sized enterprises, the use of ICTs can bring impressive gains in employment, gender equality and standards of living. In recent years, international trade in ICT-related goods and services has grown faster than total trade. Some developing countries are making good use of ICT-generated opportunities to broaden their customer bases and increase their participation in international supply chains. But if all countries are to benefit, and if ICTs are to make a real impact on a country's economic prospects, more needs to be done to build capacities and create an enabling environment, nationally and internationally. That effort will have to address broad, global issues such as Internet governance and the protection of intellectual property, as well as narrower, specific tasks such as ensuring that SMEs have access to ICTs. It is also likely to involve profound transformations on the part of individual workers and companies, and across economies as well. To accomplish such change with a minimum of disruption, policies need to be conceived and applied through a participatory approach. Such policies should also be firmly rooted in our overall struggle to defeat poverty and achieve other social goals. This fourth E-commerce and Development Report discusses the effects of ICTs on the economies of developing countries and their enterprises, the costs and benefits of investing in ICTs and how societies can achieve higher rates of return on those investments. Its data and analysis are meant to provide a solid underpinning for the global debate on how best to implement the Plan of Action agreed to at the first phase of the World Summit on the Information Society (Geneva, December 2003). As we continue our efforts to spread the benefits of ICTs more widely and equitably, I am pleased to commend this report to a wide global audience. Kofi A. Annan Secretary-General of the United Nations Acknowledgments The E-Commerce and Development Report 2004 was prepared under the overall direction of John Burley, Director of UNCTAD’s Division for Services Infrastructure for Development and Trade Efficiency (SITE). It was drafted by a team coordinated by Angel González Sanz and consisting of the following UNCTAD staff members: Dimo Calovski, Hannah Davies, Scarlett Fondeur Gil, Carlos Moreno, Marta Pérez Cusó, Susan Teltscher and Chiara Vitucci. Pilar Borque Fernández and Marie Kamara provided administrative support. Diego Oyarzun designed the cover and formatted the charts, the text was edited by Graham Grayston. The UNCTAD team acknowledges the contribution of the following consultants, experts and researchers who provided inputs for various chapters: Alan Levin, Alf Neumann, Lucinda Ramos and Ian Walden. The assistance and contributions provided by the following private and public sector entities are also gratefully acknowledged: the Ministry for Technologies, Communications and Transport of Tunisia, Fundación para el Desarrollo Sostenible en América Latina (FUNDES), the Arab Institute of Business Leadership (Tunisia) and Bedoui & Company Consulting (Tunisia). The team also wishes to thank the following individuals for the information, comments and feedback they provided regarding various aspects of the Report: Luís Abugattas, Cécile Barayre, Mongi Hamdi, Rouben Indjikian, Keri Facer and Professor Angela McFarlane. CONTENTS v Contents Foreword ............................................................................................................................ iii Acknowledgements ..................................................................................................................... iv List of Boxes ................................................................................................................................ ix List of Charts .............................................................................................................................. ix List of Tables ............................................................................................................................... x List of Abbreviations .................................................................................................................. xii Explanatory notes ....................................................................................................................... xv Overview .................................................................................................................................... xvii 1. Information and communication technologies for economic development: Issues for international dialogue............................................................................................ 1 A. The reach of the Internet and the growth of e-commerce .................................... 1 B. The dialogue about ICT-for-development: Some suggestions ............................... 15 Annex I: ICT usage in enterprises in selected countries ............................................. 20 References ................................................................................................................... 23 Notes...........................................................................................................................24 2. E-business and SMEs................................................................................................... 25 A. Introduction .......................................................................................................... 25 B. Using ICTs in enterprises ...................................................................................... 26 C. Assessing e-business in developing countries ........................................................ 31 D. The case of Latin America: E-business survey results........................................... 37 E. Conclusions ........................................................................................................... 52 Annex I: Questionnaire on ICT usage and electronic commerce in SMEs ................ 55 References ................................................................................................................... 59 Notes...........................................................................................................................60 E-COMMERCE AND DEVELOPMENT REPORT 2004 vi CONTENTS 3. The creative industries and digital and Internet technologies: The case of music ...... 61 A. Introduction .........................................................................................................
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